SCIC not to quit its holding into VNM
The annual shareholders’ meeting 2011 of Vietnam Dairy Products Joint Stock Co (Vinamilk-VNM) held on March 25 passed this year business and production plans with total revenue of 20.56 trillion dong, after tax profit at 3.586 trillion dong, up 26 percent against 2010′s.
The dairy producer also plans to pay 30 percent dividend in 2011.
Additionally, VNM’s meeting also agreed a plan to cancel its listing plan abroad but will offer 10.7 million shares in the domestic market under the odd method to increase the holding of foreign investors from 46 percent to 49 percent.
Besides, VNM will issue 3.565 million shares to the employees under the Employee Stocks Ownership Plan (ESOP). After finalising the share issuance to the employees and 3 percent odd issuance, VNM will offer bonus shares to the existing shareholders at the ratio of 2:1.
The aforementioned issuances are scheduled in May 2011.
Within this year, VNM plans to disburse 4.255 trillion dong in investment projects. Notably, VNM will disburse about 1.47 trillion dong in Vietnam milk factory project and 1.264 trillion dong in intensive projects and cattle farms.
At the same time, VNM will increase the capacity of Mega Binh Duong milk factory to 360-400 million litres per year.
According to the report at the meeting, VNM said that in Q1 its revenue is estimated at 4.658 trillion dong, rising 41 percent against the same period last year. At the same time, State Capital Investment Corp (SCIC) has no intention to quit its holding into VNM.
VNM said that the increase in price of oil and gas and transport costs recently will affect by 2 percent the company’s business operations, especially the influence of electricity price increase will be 1 percent.
Reportedly, ending 2010, VNM gained 16.081 trillion dong of revenue, after tax profit at 3.616 trillion dong and 30 percent cash dividend payment.
Till the end of December 31, 2010, VNM’s total assets reached 10.773 trillion dong, rising 27 percent against 2009′s, total equity at 7.964 trillion dong, rising 23 percent year-on-year, mainly driven by the company’s business and production operations.
Also in 2010, VNM’s disbursement was 1.68 trillion dong, equalling to 98 percent of the year’s target. Of which, VNM started the Mega Binh Duong milk factory, Dielac 2 factory, Da Nang milk factory, An investment of $8.5 million or 19.3 percent of chartered capital in Miraka Limited in New Zealand, completed receipt of the transferred capital of F&N (Vietnam) Co Ltd at Vietnam – Singapore Industrial Park (VSIP) in the aim of acquiring land for Dielac 2 Factory with a designed capacity of 54,000 tonnes/year, completed transfer of Saigon Coffee factory to Trung Nguyen Corp in order to concentrate on dairy, acquisition of the remaining shares of Lam Son Milk Co and transformation of Lam Son Milk Company as Lam Son Milk Sole Proprietorship Co Ltd, incorporation of Beverage Factory in July 2010 and launch of healthy drinks such as green tea, winter-melon tea, Artiso tea and various fruit juices and inauguration of Vinamilk’s new head-office in Phu My Hung in December 2010.
The Company has got 5 farms (Tuyen Quang, Nghe An, Binh Dinh, Lam Dong and Lam Son), with total herds of 5,657 cows as of 31st December 2010.
The number of pregnant cows and calves imported in the period is 2,240 (371 cows mainly from New Zealand, 438 from Thailand, 1,386 from Australia)
At the time of closing the shareholders’ meeting, there were 272 shareholders joining the meeting, representing for 81.8 percent of stake. VNM’s shareholders’ meeting was organised at Legend Hotel, HCM City’s district 1.
Tags: Vietnam business news, Vietnam enterprises